Corporate social responsibility: A director's perspective

The convergence of corporate social responsibility (CSR) and of corporate governance puts members of a firm’s board of directors at the forefront since they are ultimately accountable for corporate actions. This chapter discusses how CSR and corporate governance intersect and affect one another from the perspective of a corporate director. A major challenge is to reconcile directors’ duties as per corporate law with changing societal expectations and demands with respect to environmental and social issues. We argue that directors should care about CSR issues and act about them as it is consistent with proper corporate governance. However, several challenges present themselves that potentially undermine directors’ vision and effectiveness in their decision-making.